There are several considerations to make when thinking about changing your credit card to take advantage of a low interest rate credit card. The interest rate itself is an obvious place to start but it’s not the only factor you should consider when you want to compare credit cards. Many credit card companies offer low rates that look attractive at first glance, but may have hidden fees upon closer inspection.
Many credit card lenders will charge balances carried from a balance transfer at their high cash advance interest rates without interest free days this could equate to paying almost double the interest of the most competitive low rate credit cards.
Many credit card companies like to promise you an interest free option if you pay your bill off completely within a specified time frame, such as six months. What they don’t tell you however is that if you go just one day over six months, you will get charged a massive amount of interest at high interest rates. Instead of paying one month’s worth of interest, you would pay interest that is backdated from the rate of purchase. This completely cancels out the interest free period if you cannot pay within their time frame.
As with all decisions related to credit and finance your credit card change should be an informed decision, taking into consideration all of the important factors. Looking at the interest rate and the obvious fees, such as an annual fee, is a good place to begin. Surprisingly instant approval credit cards offer some of the most competitive low interest rate credit cards around. In the past instant approval credit cards were considered to be cards with high rates and fees aimed at consumers with poor credit. This is no longer necessarily the case.
Many credit card lenders aquire new customers by offering extremely attractive rates for an introductory period and charge very high interest rates as soon as that intoductory period expires. Don’t let the credit cards advertised low introductory rates convince you to take out a new credit card without taking into account what rate the interst rate will revert to and how competitive that is. This is particularly important with balance transfer credit cards when the balance may not be repaid in full during te introductory period. If the credit card reverts to a cash advance rate after the introductory rate expires, you’d be well advised to either ensure the balance has been repaid in full or organise another balance transfer before the end off the offer.
